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Galaxy Digital Holdings Ltd

Galaxy Announces Fourth Quarter and Full Year 2024 Financial Results

NEW YORK , March 28, 2025 /CNW/ - Galaxy Digital Holdings Ltd. (TSX: GLXY) (the "Company" or "GDH Ltd.") today released financial results for the three and twelve months ended December 31, 2024, for both itself and Galaxy Digital Holdings LP (the "Partnership" or "GDH LP"). In this press release, a reference to "Galaxy", "we", "our" and similar words refer to GDH Ltd., its subsidiaries and affiliates including GDH LP, or any one of them, as the context requires.

— Financial Highlights

  • Net income of $174 million for the fourth quarter 2024 and $365 million for the full year 2024 ($1.02 per diluted share), which includes a $166 million accrued legal provision from a settlement with the New York Attorney General.
  • Net income of $341 million for the fourth quarter 2024 and $532 million for the full year 2024 ($1.49 per diluted share), excluding the accrued provision.
  • For the year-to-date ("YTD") period ending March 27, 2025, net loss before tax is estimated to be between $275 million and $325 million. During the same period, total equity declined to a range between $1.9 billion and $2.0 billion. YTD results were primarily driven by the depreciation of digital asset prices.1

— Corporate Updates

Helios Data Center: Subsequent to year-end, and further to the term sheet announced on November 7, 2024, Galaxy entered a 15-year lease agreement with CoreWeave. As part of the agreement, Galaxy will deliver 133 megawatts ("MW") of Critical IT Load to host CoreWeave's artificial intelligence ("AI") and high-performance computing ("HPC") infrastructure at our Helios data center campus in the panhandle region of West Texas.2 Over the 15-year term, Galaxy expects to generate approximately $4.5 billion of total revenue.

US Listing and Reorganization: Galaxy continues to work on completing its proposed reorganization and domestication to become a Delaware-incorporated company and subsequently list on the Nasdaq, upon completion of ongoing SEC review and subject to stock exchange, shareholder and applicable regulatory approvals of such transactions. On March 28, 2025, Galaxy filed an amendment to its registration statement responding to SEC comments, which is under review.

Legal Matter: On March 27, 2025, Galaxy reached an agreement with the New York State Attorney General to resolve civil claims relating to certain investments, trading, and public statements made in connection with the LUNA digital asset from late 2020 to 2022. As of December 31, 2024, the Partnership accrued a legal provision of $166 million, which includes the impact of discounting. The undiscounted amount of the settlement is $200 million, which is payable between 2025 and 2028.






SELECT GDH LP FINANCIAL METRICS

Q4

2024

Q3

2024

Q/Q

% Change

FY

2024



Equity Capital

                 $2,277M

                 $2,081M

9 %

—



Cash & Net Stablecoins3

                 $1,016M

                    $475M

114 %

—



Net Digital Assets Excluding Stablecoins4

                    $506M

                    $562M

(10) %

—



Spot Bitcoin and Ethereum ETFs

                    $669M

                    $469M

43 %

—



Net Income (loss)

                    $174M

                   ($54M)

N.M.5

$365M



Book Value Per Share in CAD6

              $9.51 CAD

             $8.24 CAD

15 %

—



Note: Throughout this document, totals may not sum due to rounding. Quarter-over-quarter and year-over-year percentage change calculations are based on unrounded results.

 

(1) This preliminary, unaudited quarter-to-date financial information is as of March 27, 2025. Financial results exclude completion of the full quarterly valuation process of our investment portfolio. This data is subject to change as management completes its quarterly close procedures.

(2) Represents 200 MW of gross power capacity.

(3) Includes Cash Equivalents.

(4) Refer to page 16 of this release for a breakout of our net digital assets position; Excludes non-current net digital assets.

(5) Abbreviation for "Not Meaningful".

(6) Calculated as equity capital divided by outstanding Class A and Class B Units multiplied by the end of period foreign exchange rate.


— Operating Businesses

Galaxy Global Markets

Counterparty trading and advisory revenue totaled $68 million in the fourth quarter, marking a 26% QoQ increase. For the full year 2024, Galaxy generated $215 million in counterparty trading and advisory revenue, exceeding the combined total from the previous two years. The sequential growth was primarily driven by robust derivatives activity and increased demand for our lending solutions. Counterparty trading volumes increased 56% versus the third quarter, fueled by heightened spot market activity, while our average loan book size expanded to $861 million, reflecting growing institutional demand for structured financing. As Galaxy continues to expand its platform and deepen client relationships, we successfully onboarded new institutional counterparties, closing the year with 1,328 total trading counterparties.

Investment Banking successfully closed 3 deals in the fourth quarter. Notable transactions included serving as the exclusive financial advisor to Attestant in its sale to Bitwise Asset Management and advising Thunder Bridge Capital on its merger with Coincheck.






KEY PERFORMANCE INDICATORS

Q4

2024

Q3

2024

Q/Q

% Change

FY

2024



Counterparty Trading and Advisory Revenue

$68.1M

$54.1M

26 %

$215M



Loan Book Size (Average)

$861M

$668M

29 %

$640M



Total Trading Counterparties

1,328

1,280

4 %

—



Active Trading Counterparties

315

296

6 %

—



 

Counterparty Trading and Advisory Revenue: revenue from counterparty-facing activities from our Derivatives, Credit, Over-the-Counter Trading, and Quantitative Trading businesses, net of associated funding charges, and fee revenue associated with the Advisory business. Loan Book Size (Average): This quarter reflects a revised methodology for calculating Loan Book Size (Average), This metric is now based on the average market value of all open loans, excluding uncommitted credit facilities. Previously, these facilities were included in the calculation—amounting to $225M in 4Q24. As a result of this change, the 3Q24 average loan book size, which had included $195M of uncommitted credit facilities, has been restated to align with the updated methodology. Active Trading Counterparties: Counterparties with whom we have traded within the past 12 months and who are still onboarded with Galaxy's trading business.


Galaxy Asset Management

Galaxy Asset Management (GAM) reported management and performance fees of $8.6 million in the fourth quarter and a record $49 million for the full year 2024. Growth was driven by strong organic asset inflows, market appreciation and the successful execution in monetizing the FTX Estate's digital asset holdings for creditors. GAM closed the year with $5.7 billion of assets under management ("AUM") spanning more than 15 ETF and alternative investment strategies.






KEY PERFORMANCE INDICATORS

Q4

2024

Q3

2024

Q/Q

% Change

FY

2024



Management and Performance Fees

$8.6M

$8.1M

6 %

$49.0M



Total Assets Under Management

$5,660M

$4,636M

22 %

—



ETFs

$3,482M

$2,589M

34 %

—



Alternatives

$2,178M

$2,046M

6 %

—




Assets Under Management: All figures are unaudited. AUM is inclusive of sub-advised funds, committed capital closed-end vehicles, seed investments by affiliates, affiliated and unaffiliated separately managed accounts, engagements to unwind portfolios, and fund of fund products. Changes in AUM are generally the result of performance, contributions, withdrawals, liquidations, and opportunistic mandate wins. AUM for committed capital closed-end vehicles that have completed their investment period is reported as NAV (Net Asset Value) plus unfunded commitment. AUM for quarterly close vehicles is reported as of the most recent quarter available for the applicable period. AUM for affiliated separately managed accounts is reported as NAV as of the most recently available estimate for the applicable period. Total AUM for Q3 2024 was updated from what was previously reported as AUM for quarterly close vehicles are reported as of the most recent information available for the applicable period.


Digital Infrastructure

Mining revenue totaled $22.1 million in the fourth quarter, with expenses - net of curtailment credits - of $11.9 million, resulting in a 46% direct mining profit margin. Galaxy's average marginal cost to mine remained highly competitive at under $38,000 per bitcoin in the fourth quarter and approximately $26,000 for the full year 2024, underscoring the success of our power management strategy. Galaxy mined 977 BTC in 2024, but anticipates a decline in quarterly Hashrate Under Management and bitcoin production in the coming quarters as operations at the Helios Campus are retrofitted to support AI and HPC demands.  

Blockchain Infrastructure continued its strong growth, generating $26.4 million in net blockchain rewards in the fourth quarter, representing a 147% QoQ increase. As of December 31, 2024, Assets Under Stake reached $4.2 billion, up from $240 million at the start of the year, driven by robust organic growth and the strategic acquisition of CryptoManufaktur in the third quarter.






KEY PERFORMANCE INDICATORS

Q4

2024

Q3

2024

Q/Q

% Change

FY

2024



Mining Revenue

$22.1M

$18.5M

19 %

$94.9M



Total Hashrate Under Management

6.1

6.2

(3) %

—



Number of Proprietary BTC Mined

187

176

6 %

977



Average Marginal Cost to Mine 

< $38.0K

< $38.0K

N.M.

~ $26.0K



Net Blockchain Rewards1

$26.4M

$10.7M

147 %

$58.5M



Assets Under Stake

$4,235M

$3,394M

25 %

—






(1) Blockchain rewards are net of staking costs.

Hashrate Under Management: the total combined hashrate of active proprietary and hosted mining capacity managed by Galaxy. Number of Proprietary BTC Mined: The total amount of bitcoin mined from proprietary mining operations. Average Marginal Cost to Mine: The marginal cost of production for each bitcoin generated during the period. The calculation excludes depreciation, mark-to-market on power contracts, and corporate overhead. Assets Under Stake: all figures are unaudited. AUS reflects the total notional value of assets bonded to Galaxy validators, based on prices as of the end of the specified period. This includes certain Galaxy balance sheet assets, Galaxy affiliate assets, and third-party assets.


High-Performance Computing

Helios Data Center: Subsequent to year-end, and further to the term sheet announced on November 7, 2024, Galaxy entered a 15-year lease agreement with CoreWeave. As part of the agreement, Galaxy will deliver 133 megawatts ("MW") of Critical IT Load to host CoreWeave's artificial intelligence ("AI") and high-performance computing ("HPC") infrastructure at our Helios data center campus in the panhandle region of West Texas.1 Over the 15-year term, Galaxy expects to generate approximately $4.5 billion of total revenue.

Summary of Select Operating Expenses1

Operating expenses

Q4 2024

Q3 2024

Q/Q % Change

FY 2024

Compensation and compensation related

$66M

$40M

65 %

$191M

Equity based compensation

$16M

$13M

23 %

$58M

General and administrative

$235M

$48M

390 %

$378M

Mining costs

$12M

$10M

20 %

$48M

Trading, commission and custody expenses

$10M

$6M

67 %

$29M

Technology

$9M

$8M

13 %

$31M

Depreciation and amortization

$16M

$16M

— %

$56M

Legal settlement

$166M

$0M

N.M.

$166M

Other2

$22M

$8M

175 %

$48M

Professional fees

$13M

$11M

18 %

$51M

Interest

$40M

$29M

38 %

$110M

Notes interest expense

$10M

$7M

43 %

$31M

(1) Excludes blockchain reward distributions.

(2) "Other" includes expenses such as those related to impairment loss, marketing, provision for credit loss, insurance, fund administration and director fees. Additional detail can be found in Note 20 of GDH LP Financial Statements for this quarter.

Overview of Fourth Quarter Operating Expenses:

  • Compensation and compensation related expenses of $66 million increased by approximately $26 million QoQ, primarily driven by a bonus accrual adjustment.
  • General and administrative expenses increased by approximately $187 million QoQ, driven by a legal provision of $166 million, $7 million loss on disposal of mining equipment, $4 million provisions for credit losses on our receivables and a $4 million QoQ increase in trading, commission and custody expenses.
  • Professional fees of $13 million increased by approximately $2 million QoQ, primarily driven by higher legal expenses incurred during the quarter.
  • Interest expense rose approximately $11 million QoQ, reflecting increased non-dilutive borrowing activity, which is directly tied to increased Global Markets operating activity.
  • Notes interest expense increase by approximately $3 million QoQ, reflecting the interest on the new exchangeable note we issued in November 2024.

— Balance Sheet Net Digital Asset Exposure By Token

The Company's balance sheet maintains exposure to bitcoin, ether, and other digital assets through a diversified allocation across spot positions, ETFs, private equity holdings and other non-current investments.

Balance sheet net digital asset exposure as of December 31, 2024, is as follows:

— GDH Ltd.'s Financial Highlights

As the only significant asset of GDH Ltd. is its minority interest in GDH LP, its results are driven by the results of GDH LP. GDH Ltd. accounts for its investment in this associate (GDH LP) using the equity method. The investment, initially recorded at cost, is increased or decreased to recognize GDH Ltd.'s share of the earnings and losses of GDH LP. 

The net comprehensive income (loss) of GDH Ltd. was $34.7 million and $78.9 million for the three and twelve months ended December 31, 2024, respectively.

Important U.S. Tax Information - Action Required by U.S. Shareholders

Galaxy shareholders who are U.S. taxpayers should be aware that there may be significant and adverse U.S. federal income tax consequences relating to Galaxy's PFIC status for 2024 and prior years and in connection with Galaxy's domestication from Cayman to Delaware unless they make certain elections on their originally filed U.S. federal income tax returns for 2024, which are generally due on April 15, 2025 (subject to allowable extensions). These consequences and, therefore, the need to take action apply to both direct and indirect holdings of Galaxy shares. These elections are described in the notice posted by Galaxy

in March 2024 on its website at https://investor.galaxy.com/financials/annual-reports/default.aspx. Before filing their U.S. federal income tax returns for 2024, direct and indirect Galaxy shareholders who are, or who have investors who are, U.S. taxpayers are urged to review the notice and to consult their tax advisors regarding the advisability of making these elections on their U.S. federal income tax returns for 2024.

Earnings Conference Call

An investor conference call will be held today, March 28, 2025, at 8:30 AM Eastern Time. A live webcast with the ability to ask questions will be available at: https://investor.galaxy.com/. The conference call can also be accessed by investors in the United States or Canada by dialing 1-800-245-3047, or 1-203-518-9765 (outside the U.S. and Canada). A replay of the webcast will be available and can be accessed in the same manner as the live webcast on the Company's Investor Relations website. Through April 28, 2025, the recording will also be available by dialing 1-844-512-2921, or 1-412-317-6671 (outside the U.S. and Canada) and using the passcode: 158488.

About Galaxy Digital Holdings Ltd. (TSX: GLXY) ("GDH Ltd.") and Galaxy Digital Holdings LP ("GDH LP")

Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy. We serve a diversified client base, including institutions, startups, and qualified individuals. Since 2018, Galaxy has been building a holistic financial platform spanning three complementary operating businesses: Global Markets, Asset Management, and Digital Infrastructure Solutions. Our offerings include, amongst others, trading, lending, strategic advisory services, institutional-grade investment solutions, proprietary bitcoin mining and hosting services, network validator services, and the development of enterprise self-custodial technology. The company is headquartered in New York City, with global offices across North America, Europe, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.

This press release should be read in conjunction with (i) GDH LP's Management Discussion and Analysis and Consolidated Financial Statements for the year ended December 31, 2024 and (ii) GDH Ltd.'s Management Discussion and Analysis and Consolidated Financial Statements for the year ended December 31, 2024 (together, the "Consolidated Financial Statements" and "MD&As"), which have been filed on SEDAR at www.sedarplus.ca.

Disclaimers and Additional Information

The TSX has not approved or disapproved of the information contained herein. The Ontario Securities Commission has not passed upon the merits of the disclosure record of Galaxy.

This press release contains certain pre-released first quarter 2025 financial information (the "pre-released financial information"). The pre-released financial information contained in this press release is preliminary and represents the most current information available to management. The Partnership's actual consolidated financial statements for such period may result in material changes to the pre-released financial information summarized in this press release (including by any one financial metric, or all of the financial metrics) as a result of the completion of normal quarter accounting procedures and adjustments or due to other risks contained in the Annual Information Form for the year ended December 31, 2024. Although the Company believes the expectations reflected in this press release are based upon reasonable assumptions, the Company can give no assurance that actual results will not differ materially from these expectations.

No Offer or Solicitation 

As previously announced, the Company intends to complete its proposed reorganization and domestication to become a Delaware-based company, and subsequently list on the Nasdaq, upon completion of the SEC's ongoing review and subject to stock exchange approval of such listing. The proposed reorganization and domestication is subject to approval by shareholders the Company and applicable regulatory authorities, including the Toronto Stock Exchange. In connection with the proposed reorganization and domestication, the Company has filed a registration statement, including a management information circular/prospectus, with the SEC, which has not yet become effective. SHAREHOLDERS ARE ADVISED TO READ THE FINAL VERSIONS OF SUCH DOCUMENTS, WHEN AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders may obtain a free copy of the registration statement (including the management information circular/prospectus) and any other relevant documents from the SEC's website at http://www.sec.gov. Copies of the final versions of such documents can also be obtained, when available, without charge, via Galaxy's investor relations website: https://investor.galaxy.com/. The Company anticipates holding a shareholder meeting to seek approval following the effectiveness of the registration statement, and further details will be included in the management information circular to be mailed to shareholders and posted on the Company's SEDAR profile at www.sedarplus.ca. 

This document shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the domestication or any of the other proposed reorganization transactions. This document does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

CAUTION ABOUT FORWARD-LOOKING STATEMENTS 

The information in this document may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and "forward-looking information" under Canadian securities laws (collectively, "forward-looking statements"). Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, including statements about Galaxy's pre-released financial information, Galaxy's business plans and goals, including with respect to the lease with CoreWeave and the pending domestication and the related transactions (the "transactions"), and the parties, perspectives and expectations, are forward-looking statements. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this document are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (1) the inability to complete the proposed domestication and reorganization transactions, due to the failure to obtain shareholder and stock exchange approvals, or otherwise; (2) changes to the proposed structure of the proposed domestication and reorganization transactions that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining shareholder or stock exchange approval of the transactions; (3) the ability to meet and maintain listing standards following the consummation of the proposed domestication and reorganization transactions; (4) the risk that the proposed domestication and reorganization transactions disrupt current plans and operations; (5) costs related to AI/HPC plans, the transactions, operations and strategy; (6) changes in applicable laws or regulations; (7) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (8) changes or events that impact the cryptocurrency and AI/HPC industry, including potential regulation, that are out of our control; (9) the risk that our business will not grow in line with our expectations or continue on its current trajectory; (10) the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of it; (11) the possibility that there is a disruption or change in power dynamics impacting our results or current or future load capacity; (12) any delay or failure to consummate the business mandates or achieve its pipeline goals (13) technological challenges, cyber incidents or exploits; (14) risks related to retrofitting our existing facility from mining to AI and HPC infrastructure, including the timing of construction and its impact on lease revenue; (15) any inability or difficulty in obtaining financing for the AI and HPC financing on acceptable terms or at all; (16) changes to the AI and HPC infrastructure needs and their impact on future plans at the Helios campus; (17) risks associated with the leasing business, including those associated with counterparties; and (18) those other risks contained in the Annual Information Form for the year ended December 31, 2024 available on the Company's profile at www.sedarplus.ca and its Management's Discussion and Analysis, filed on March 28, 2025. Factors that could cause actual results to differ materially from those described in such forward-looking statements include, but are not limited to, financing and construction terms and conditions, a decline in the digital asset market or general economic conditions; the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of the stated addressable market; the failure or delay in the adoption of digital assets and the blockchain ecosystem; a delay or failure in developing infrastructure for our business or our businesses achieving our mandates; delays or other challenges in the mining and AI/HPC infrastructure business related to hosting, power or construction; any challenges faced with respect to exploits, considerations with respect to liquidity and capital planning and changes in applicable law or regulation and adverse regulatory developments. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. We are not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements.

©Copyright Galaxy Digital 2025. All rights reserved.

Galaxy Digital Holdings LP's Consolidated Statements of Financial Position (unaudited)

(in thousands)

December 31, 2024


December 31, 2023

Assets




Current assets




Cash and cash equivalents

$               462,103


$               316,610

Digital assets

2,952,633


1,078,587

Receivable for digital asset trades

20,974


41,339

Digital asset loans receivable, net of allowance

579,530


104,504

Digital assets receivables

53,608


14,686

Investments (includes $84.5 million and $0 of equity method
investments, respectively)

834,812


—

Assets posted as collateral

277,147


318,195

Receivables

30,314


15,983

Derivative assets

207,653


173,209

Prepaid expenses and other assets

26,444


37,910

Loans receivable, net of allowance

476,620


377,105

Due from related party

5,263


5,007

Total current assets

5,927,101


2,483,135





Digital assets receivables

7,112


6,174

Investments (includes $433.6 million and $290.4 million of equity method
investments, respectively)

808,694


735,103

Restricted digital assets

11,560


41,356

Loans receivable, net of allowance, non-current

—


10,259

Property and equipment

267,648


259,965

Other non-current assets

107,300


95,000

Goodwill

58,037


44,257

Total non-current assets

1,260,351


1,192,114

Total assets

$                 7,187,452


$                 3,675,249





Liabilities and Equity




Current liabilities




Investments sold short

6,524


25,295

Derivative liabilities

165,858


160,642

Accounts payable and accrued liabilities

163,644


69,212

Payables to customers

19,520


3,503

Taxes payable

5,315


25,936

Payable for digital asset trades

20,970


4,176

Digital asset loans payable

1,497,609


398,277

Loans payable

510,718


93,069

Collateral payable

1,399,655


581,362

Due to related party

97,871


67,953

Lease liability

3,294


3,860

Total current liabilities

3,890,978


1,433,285





Notes payable

845,186


408,053

Other non-current liabilities

174,256


44,130

Total non-current liabilities

1,019,442


452,183

Total liabilities

4,910,420


1,885,468





Equity




Partners' capital

2,277,032


1,789,781

Total equity

2,277,032


1,789,781





Total liabilities and equity

$           7,187,452


$            3,675,249

Galaxy Digital Holdings LP's Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited)

(in thousands)

Year ended


December 31, 2024


December 31, 2023

Income




Fee revenue

$                          103,194


$                            51,342

Net realized gain (loss) on digital assets

615,687


311,830

Net realized gain (loss) on investments

(171,108)


13,412

Lending and staking revenue

274,254


52,216

Net derivative gain

267,769


151,583

Revenue from proprietary mining

63,305


33,121

Other income

1,457


357


1,154,558


613,861





Operating expenses




Compensation and compensation related

191,052


138,401

Equity based compensation

58,489


72,275

General and administrative

377,523


75,637

Professional fees

51,076


37,062

Blockchain reward distributions

130,298


1,086

Interest

109,539


24,653

Notes interest expense

30,804


27,285


(948,781)


(376,399)





Other




Net unrealized gain (loss) on digital assets

(255,380)


1,950

Net unrealized gain (loss) on investments

429,899


84,415

Net gain (loss) on notes payable - derivative

(31,727)


(9,603)

Foreign currency loss

1,317


(493)


144,109


76,269





Income (loss) before income taxes

349,886


313,731

Income taxes expense (benefit)

(15,426)


17,833

Net income (loss) for the period

$                          365,312


$                          295,898





Other comprehensive income (loss)




Foreign currency translation adjustment

$                              1,190


$                                   88

Comprehensive income (loss) for the period

$                          366,502


$                          295,986

 

(in thousands)

Three Months ended
December 31, 2024


Three Months ended
December 31, 2023

Income




Fee revenue

$                             27,891


$                             17,135

Net realized gain on digital assets

560,649


293,149

Net realized gain on investments

(84,919)


(55,299)

Lending and staking revenue

116,270


16,893

Net derivative gain

62,467


71,121

Revenue from proprietary mining

15,430


12,449

Other income

298


24


698,086


355,472





Operating expenses




Compensation and compensation related

66,015


42,154

Equity based compensation

16,382


14,581

General and administrative

234,791


15,529

Professional fees

12,829


10,548

Blockchain reward distributions

60,760


260

Interest

39,829


8,983

Notes interest expense

9,683


6,913


(440,289)


(98,968)





Other




Net unrealized gain (loss) on digital assets

(439,427)


(22,501)

Net unrealized gain (loss) on investments

368,876


92,932

Net gain (loss) on notes payable - derivative

(16,583)


(8,581)

Foreign currency loss

(131)


350


(87,265)


62,200





Income (loss) before income taxes

170,532


318,704

Income taxes expense (benefit)

(3,765)


17,247

Net income (loss) for the period

$                           174,297


$                           301,457





Other comprehensive income (loss)




Foreign currency translation adjustment

$                                  218


$                                    85





Comprehensive income (loss) for the period

$                           174,515


$                           301,542

 

Year ended
December 31, 2024


Year ended
December 31, 2023

GDH LP Net income (loss) per unit:




Basic

$                                 1.08


$                                 0.92

Diluted

1.02


0.90

Weighted average units:




Basic

336,730,894


321,599,100

Diluted

357,988,647


329,613,940

End of period share count:

343,440,123


325,227,806

Reportable segments (unaudited)

Income and expenses by each reportable segment of GDH LP for the three months ended December 31, 2024 are as follows:

(in thousands)

Global Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate

 and Other (1)

Totals

Income (loss)






Fee revenue(1)






Mining hosting fees

$                     —

$                     —

$                6,626

$                     —

$                6,626

Licensing fees

1

1

1,037

(120)

919

Management and performance fees

8,676

8,560

11

(663)

16,584

Advisory fees

3,762

—

—

—

3,762

Total fee revenue (1)

12,439

8,561

7,674

(783)

27,891

Lending and staking revenue






Lending income

27,546

(1)

1,524

3

29,072

Blockchain rewards

11,150

1,886

81,412

(7,250)

87,198

Total lending and staking revenue (1)(2)

38,696

1,885

82,936

(7,247)

116,270







Net realized gain on digital assets

511,511

49,138

—

—

560,649

Net realized gain (loss) on investments

(86,238)

1,319

—

—

(84,919)

Net derivative gain (loss)

62,501

—

(34)

—

62,467

Revenue from proprietary mining

—

—

15,430

—

15,430

Other income (expense)

(131)

59

150

220

298


538,778

60,962

106,156

(7,810)

698,086







Compensation expense

36,300

16,892

13,669

15,536

82,397

Interest

37,742

—

—

2,087

39,829

Notes interest expense

—

—

—

9,683

9,683

Blockchain reward distributions (1)(2)

—

—

68,010

(7,250)

60,760

Depreciation and amortization

1,341

123

12,586

1,801

15,851

Other operating expenses

9,517

2,646

22,066

197,542

231,771

Operating expenses

84,900

19,661

116,331

219,399

440,289







Other income






Net unrealized gain (loss) on digital assets

(409,911)

(29,723)

207

—

(439,427)

Net unrealized gain on investments

304,880

66,497

(2,501)

—

368,876

Net (loss) on notes payable - derivative

—

—

—

(16,583)

(16,583)

Foreign currency gain

(131)

—

—

—

(131)


(105,162)

36,774

(2,294)

(16,583)

(87,265)







Income (loss) before income taxes

348,716

78,075

(12,469)

(243,792)

170,532

Income tax expense

—

—

—

(3,765)

(3,765)

Net income (loss) for the period

$            348,716

$              78,075

$            (12,469)

$          (240,027)

$            174,297

Foreign currency translation adjustment

$                     —

$                     —

$                     —

$                   218

$                   218

Comprehensive income (loss) for the period

$            348,716

$              78,075

$            (12,469)

$          (239,809)

$            174,515


(1) All intercompany transactions are eliminated in the Corporate and Other segment.

(2) The Partnership operates public proof of stake validation infrastructure which allows third parties to stake their digital assets on its validator nodes. Blockchain rewards include amounts earned by these third parties. These corresponding costs are included in blockchain reward distribution.

Income and expenses by each reportable segment of GDH LP for the three months ended December 31, 2023 are as follows:

(in thousands)

Global Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate
 and Other (1)

Totals

Income (loss)






Fee revenue






Hosting fees

$                     —

$                     —

$               6,345

$                     —

$               6,345

Licensing fees

—

1

415

118

534

Management and performance fees

414

8,369

1,443

(1,127)

9,099

Advisory fees

2,147

—

55

—

2,202

Other fee revenue

54

—

(1,099)

—

(1,045)

Total fee revenue (1)

2,615

8,370

7,159

(1,009)

17,135

Lending and staking revenue






Lending income

16,063

166

272

(975)

15,526

Blockchain rewards

—

1,367

—

—

1,367

Total lending and staking revenue

16,063

1,533

272

(975)

16,893







Net realized gain (loss) on digital assets

292,796

353

—

—

293,149

Net realized gain (loss) on investments

(55,036)

(263)

—

—

(55,299)

Net derivative gain (loss)

71,730

(468)

(141)

—

71,121

Revenue from proprietary mining

—

—

12,449

—

12,449

Other income (expense)

(35)

4

—

55

24


328,133

9,529

19,739

(1,929)

355,472







Compensation

28,319

10,565

8,474

9,377

56,735

Interest

5,501

—

—

3,482

8,983

Notes interest expense

—

—

—

6,913

6,913

Depreciation and amortization

117

61

6,649

1,195

8,022

Blockchain reward distributions

—

—

260

—

260

Other operating expenses

26,110

3,914

(7,772)

(4,197)

18,055

Operating expenses

60,047

14,540

7,611

16,770

98,968







Other






Net unrealized gain (loss) on digital assets

(98,968)

75,248

1,219

—

(22,501)

Net unrealized loss on investments

65,922

25,675

1,335

—

92,932

Net gain on notes payable - derivative

—

—

—

(8,581)

(8,581)

Foreign currency loss

350

—

—

—

350


(32,696)

100,923

2,554

(8,581)

62,200







Income (loss) before income taxes

235,390

95,912

14,682

(27,280)

318,704

Income tax benefit

—

—

—

17,247

17,247

Net income (loss) for the period

$            235,390

$             95,912

$             14,682

$            (44,527)

$            301,457

Foreign currency translation adjustment

—

—

—

85

85

Comprehensive income (loss) for the period

$            235,390

$             95,912

$             14,682

$            (44,442)

$            301,542


(1) All intercompany transactions are eliminated in the Corporate and Other segment.

Income and expenses by each reportable segment of GDH LP for the year ended December 31, 2024 are as follows:

(in thousands)

Global
Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate
 and Other (1)

Totals

Income (loss)






Fee revenue






Mining hosting fees

$                —

$                    —

$               31,566

$                 —

$         31,566

Licensing fees

2

2

3,256

(480)

2,780

Management and performance fees

17,896

49,026

11

(2,853)

64,080

Advisory fees

4,768

—

—

—

4,768

Total fee revenue (1)

22,666

49,028

34,833

(3,333)

103,194

Lending and staking revenue






Lending income

82,731

100

2,636

22

85,489

Blockchain rewards (1) (2)

20,813

14,790

174,420

(21,258)

188,765

Total lending and staking revenue

103,544

14,890

177,056

(21,236)

274,254







Net realized gain (loss) on digital assets

547,349

67,542

796

—

615,687

Net realized gain (loss) on investments

(187,058)

13,527

2,423

—

(171,108)

Net derivative gain

267,010

—

759

—

267,769

Revenue from proprietary mining

—

—

63,305

—

63,305

Other income

674

119

444

220

1,457


754,185

145,106

279,616

(24,349)

1,154,558







Compensation expense

112,019

47,181

40,418

49,923

249,541

Blockchain reward distributions (2)

—

—

151,556

(21,258)

130,298

Interest

102,010

—

—

7,529

109,539

Notes interest expense

—

—

—

30,804

30,804

Depreciation and amortization

3,090

406

47,043

5,796

56,335

Other operating expenses

82,083

12,684

69,613

207,884

372,264

Operating expenses

299,202

60,271

308,630

280,678

948,781







Net unrealized gain (loss) on digital assets

(207,072)

(45,165)

(3,143)

—

(255,380)

Net unrealized gain (loss) on investments

368,331

64,904

(3,336)

—

429,899

Net loss on notes payable - derivative

—

—

—

(31,727)

(31,727)

Foreign currency loss

1,317

—

—

—

1,317


162,576

19,739

(6,479)

(31,727)

144,109







Income (loss) before income taxes

$       617,559

$           104,574

$              (35,493)

$      (336,754)

$       349,886

Income tax expense (benefit)

—

—

—

(15,426)

(15,426)

Net income (loss)

$       617,559

$           104,574

$              (35,493)

$      (321,328)

$       365,312

Foreign currency translation adjustment

—

—

—

1,190

1,190

Comprehensive income (loss)

$       617,559

$           104,574

$              (35,493)

$      (320,138)

$       366,502


(1) All intercompany transactions are eliminated in the Corporate and Other segment.

(2) The Partnership operates public proof of stake validation infrastructure which allows third parties to stake their digital assets on its validator nodes. Blockchain rewards include amounts earned by these third parties. These corresponding costs are included in blockchain reward distribution.

Income and expenses by each reportable segment of GDH LP for the year ended December 31, 2023 are as follows:

(in thousands)

Global
Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate
 and Other (1)

Totals

Income (loss)






Fee revenue






Mining hosting fees

$                —

$                    —

$               24,335

$                 —

$         24,335

Licensing fees

—

1

1,649

—

1,650

Management and performance fees

414

22,202

1,443

(3,220)

20,839

Advisory fees

4,463

—

55

—

4,518

Total fee revenue (1)

4,877

22,203

27,482

(3,220)

51,342

Lending and staking revenue






Lending income

48,572

190

272

(975)

48,059

Blockchain rewards

1,344

2,813

—

—

4,157

Total lending and staking revenue

49,916

3,003

272

(975)

52,216







Net realized gain (loss) on digital assets

307,057

4,773

—

—

311,830

Net realized gain (loss) on investments

(8,936)

22,348

—

—

13,412

Net derivative gain (loss)

150,715

1,074

(206)

—

151,583

Revenue from proprietary mining

—

—

33,121

—

33,121

Other income

175

(127)

254

55

357

Total revenues and gain (loss) from operations

503,804

53,274

60,923

(4,140)

613,861







Compensation expense

109,297

46,401

26,565

28,413

210,676

Blockchain reward distributions

—

—

1,086

—

1,086

Interest

19,825

—

—

4,828

24,653

Notes interest expense

—

—

—

27,285

27,285

Depreciation and amortization

401

197

22,798

4,521

27,917

Other operating expenses

57,137

10,051

(3,843)

21,437

84,782

Operating expenses

186,660

56,649

46,606

86,484

376,399







Net unrealized gain (loss) on digital assets

(73,492)

74,223

1,219

—

1,950

Net unrealized gain (loss) on investments

79,001

(2,193)

7,607

—

84,415

Net gain (loss) on notes payable - derivative

—

—

—

(9,603)

(9,603)

Foreign currency loss

(493)

—

—

—

(493)


5,016

72,030

8,826

(9,603)

76,269







Income (loss) before income taxes

$       322,160

$             68,655

$               23,143

$      (100,227)

$       313,731

Income tax expense (benefit)

—

—

—

17,833

17,833

Net income (loss)

$       322,160

$             68,655

$               23,143

$      (118,060)

$       295,898

Foreign currency translation adjustment

—

—

—

88

88

Comprehensive income (loss)

$       322,160

$             68,655

$               23,143

$      (117,972)

$       295,986


(1) All intercompany transactions are eliminated in the Corporate and Other segment.

Assets and liabilities by reportable segment of GDH LP as of December 31, 2024 are as follows:

(in thousands)

Global Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate and
Other

Totals

Total assets

$          6,089,936

$             632,751

$             356,713

$             108,052

$          7,187,452







Total liabilities

$          3,644,943

$                    194

$               23,497

$          1,241,786

$          4,910,420

Assets and liabilities by reportable segment of GDH LP as of December 31, 2023 are as follows:

(in thousands)

Global Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate and
Other

Totals

Total assets

$          2,726,950

$             575,056

$             321,322

$               51,921

$          3,675,249







Total liabilities

$          1,289,792

$               10,968

$                 9,817

$             574,891

$          1,885,468

Select statement of financial position information

 Select assets by reporting segment of GDH LP as of December 31, 2024 is as follows:

(in thousands)

Global Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate and
Other

Totals

Digital assets

$         2,940,659

$             23,534

$                     —

$                     —

$         2,964,193

Digital assets receivables

12,027

47,390

1,303

—

60,720

Assets posted as collateral

277,147

—

—

—

277,147

Loans receivable (1)

1,056,150

—

—

—

1,056,150

Investments

1,087,588

547,466

8,452

—

1,643,506

Property and equipment

—

—

260,388

7,260

267,648


(1) Includes digital asset and fiat loans.

Select assets by reporting segment of GDH LP as of December 31, 2023 is as follows:

(in thousands)

Global Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate and
Other

Totals

Digital assets

$         1,052,013

$             67,930

$                     —

$                     —

$       1,119,943

Digital assets receivables

6,506

13,135

1,219

—

20,860

Assets posted as collateral

318,195

—

—

—

318,195

Loans receivable (1)

491,868

—

—

—

491,868

Investments

244,807

476,262

14,034

—

735,103

Property and equipment

109

—

252,552

7,304

259,965


(1) Includes digital asset and fiat loans.

Net Digital Assets Position

Net digital assets includes all digital assets categorized as assets, less all digital assets categorized as liabilities on the statement of financial position and is included in the Company's liquidity measure. Net digital assets as of December 31, 2024 is as follows:

(in thousands)

BTC(3)

ETH (4)

Stablecoin

Other(5)

As of 
 December 31,
2024

Assets






Digital assets

$        1,578,553

$         453,503

$          512,476

$         408,101

$          2,952,633

Digital asset loans receivable, net of allowance

2,540

94,338

393,733

88,919

579,530

Digital assets receivable, current

—

—

—

53,608

53,608

Digital assets receivable, noncurrent

—

—

—

7,112

7,112

Assets posted as collateral - Digital assets(1)

256,214

20,933

—

—

277,147

Restricted digital assets, non-current(2)

—

—

—

11,560

11,560


1,837,307

568,774

906,209

569,300

3,881,590

Liabilities






Digital asset loans payable

934,381

193,432

189,336

180,461

1,497,609

Collateral payable - Digital assets(1)

822,494

137,332

163,237

201,597

1,324,660


1,756,875

330,764

352,573

382,058

2,822,269

Digital assets, net

$            80,432

$         238,010

$          553,636

$         187,242

$          1,059,321

Stablecoins, net(2)

$                    —

$                  —

$          553,636

$                  —

$             553,636

Digital assets, net excl. stablecoins

$            80,432

$         238,010

$                   —

$         187,242

$             505,685







Digital asset investment vehicles included in investments

$           768,948

$           32,089

$                   —

$         219,706

$          1,020,743


(1) Excludes cash portion of balance on the Partnership's statement of financial position.

(2) Represents tokens that are subject to a sale restriction of greater than one year.

(3) Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including spot ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited reflected in the last row of this table.

(4) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including spot ETFs and Galaxy sponsored ETH funds, reflected in the last row of this table.

(5) Includes $52.8 million net SOL and $27.7 million net TIA digital assets. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC (includes $119.9 million SOL and $31.4 million of AVAX) and Ripple Lab Inc., reflected in the last row of this table.

(6) The Partnership also held digital asset derivative positions not reflected in this table. 

Net digital assets includes all digital assets categorized as assets, less all digital assets categorized as liabilities on the statement of financial position and is included in the Company's liquidity measure. Net digital assets as of December 31, 2023 is as follows:

(in thousands)

BTC(4)

ETH (5)

Stablecoin

Other(6)

As of
 December 31, 
2023(7)

Assets






Digital assets

$         589,011

$       174,978

$           179,222

$            135,376

1,078,587

Digital asset loans receivable, net of allowance

3,044

87,252

12,000

2,208

104,504

Digital assets receivable, current

—

—

—

14,686

14,686

Digital assets receivable, non-current

—

—

—

6,174

6,174

Assets posted as collateral - Digital assets(1)

197,092

119,012

—

—

316,104

Restricted digital assets, non-current(2)

—

—

—

41,356

41,356


789,147

381,242

191,222

199,800

1,561,411

Liabilities






Digital asset loans payable

48,202

14,603

297,762

37,710

398,277

Collateral payable - Digital assets(1)

437,889

116,723

9,457

5,926

569,995


486,091

131,326

307,219

43,636

968,272

Digital assets, net

$         303,056

$       249,916

$         (115,997)

$            156,164

$             593,139

Stablecoins, net(3)

$                  —

$                —

(115,997)

$                     —

$            (115,997)

Digital assets, net excl. stablecoins

$         303,056

$       249,916

$                    —

$            156,164

$             709,136







Digital asset investment vehicles included in investments

$         130,583

$        22,107

$                    —

$              37,171

$             189,861


(1) Excludes cash portion of balance on the Partnership's statement of financial position.

(2) Represents TIA tokens that are subject to a sale restriction of greater than one year.

(3) As of December 31, 2023, stablecoin liabilities were greater than stablecoin assets.

(4) Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including bitcoin futures ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited, net of associated investment liabilities, reflected in the last row of this table.

(5) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including Galaxy sponsored ETH funds, reflected in the last row of this table.

(6) Includes $12.0 million net SOL and $68.5 million net TIA. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including Ripple Lab Inc., reflected in the last row of this table.

(7) The Partnership also held digital asset derivative positions not reflected in this table.

 

All figures are in U.S. Dollars unless otherwise noted.

 

SOURCE Galaxy Digital Holdings Ltd.